Mr. Sitembele Mase (Chief Executive Officer: ECDC). Topic

Support for the growth of New Industries
and SMME in the Eastern Cape
27 September 2012
• ECDC’s mandate is to finance, market ,promote and
stimulate key economic sectors for growth, job creation
and skills development as per its founding ECDC Act
No.2 of 1997
promulgated by the Eastern Cape
Provincial Legislature.
ECDC is an entity which is wholly owned by the state
and is listed as a schedule 3(D) in terms of the PFMA.
• For the past 2008/9 to date, the ECDC has disbursed
R741m to approximately 1,500 SMME’s in various
economic sectors.
• Over this period it has had an ‘unqualified audit opinion
as expressed by the A-G.
The Province of the Eastern Cape is rich in the following
natural resources and endownments:
• Natural Fibres
• Bamboo
• Agave Americana
• Blueberries
• Fresh Water Fish / Aquaculture
• Pineapples
A potential exists for the complete beneficiation in these
industries within the Eastern Cape to produce high-value
nichè products and thereby create the associated
employment and income generating opportunities
ECDC Contribution to Natural Fibre Industry
• ECDC decided to research and invest in NF industry in 2008
• Contributed R6 million into its research within the Eastern
• Established strategic partnership with the IDC and CSIR
• Original EC initiative found expression in the Industrial Policy
Action Plan of the the dti.
• ECDC is currently considering the feasibility of registering a
National Fibre Industry Association and further financial
Advantages of promoting the Natural Fibre Industry
• Natural fibres are a healthy products: these products contain oxidants
which are good for metabolism
• Natural fibres are a responsible choice: they provide livelihoods and
food security to millions of small-scale farmers and processors.
• Natural fibres are a sustainable choice : The emerging "green"
economy is based on energy efficiency, renewable feed stocks in polymer
products, industrial processes that reduce carbon emissions and
recyclable materials.
• Natural fibres are a high-tech choice : In Europe, car makers are using
an estimated 80 000 tonnes of natural fibres a year to reinforce
thermoplastic panels (bumpers, dashboards, etc.)
• Natural fibres are a fashionable choice : Natural fibres are at the heart
of an eco-fashion or "sustainable clothing" movement that seeks to create
garments that are sustainable at every stage of their life cycle, from
production to disposal
Use of Fibre Products by Vehicle Manufacturers
AUDI A2, A3,A4,A6 & A8 models: Seat backs, side and back door
panels, boot lining, hat rack, spare tyre lining
BMW 3,5,7 series models: Door panels, headliner panel, boot lining,
seat backs, noise insulation panels, moulded foot well linings
MERCEDES BENZ A, C, E and S-class models: Door panels,
windshield, dashboard, business table, pillar cover panel
FORD Mondeo & Focus: Door panels, B-pillar, boot liner
VOLVO Models: Seat padding, natural foams, cargo floor tray
TOYOTA cars: Door panels, seat backs, Spare tyre cover
VOLKSWAGEN Golf & Passat models: Door panel, seat back, boot
lid finish panel, boot liner
Products from Natural Fibre
Opportunities exist for products in knitted
and woven garments for the clothing and
textile industry
The rich cultural heritage of the Eastern
Cape provides opportunities for products
in clothing brands using wool and mohair
development the ECDC is targeting to
finance cotton producing co-operatives
for the promotion of local economy
Wool & Mohair
ECDC Contribution to Bamboo Industry
Initiative started during 2010 when ECDC realised that the Bamboo Industry
could be a catalyst for economic development in rural areas of the Eastern
ECDC invested a cumulative investment amounting to R3m in 2011 for trials
in five (5) small bamboo growing sites
Already, 20 new jobs have been created as a result of the five ECDCfunded projects, while another 77 are expected to be created by February
ECDC successfully hosted a World Bamboo Day celebrations in EL on the
18 September 2012 in partnership with the IDC and other role players.
ECDC secured additional funding to implement two small bamboo value
adding community projects and plant 111 hectares of bamboo.
Currently in the process of establishing a National Steering Committee to
drive the implementation of Bamboo planting and value-add projects.
Typical products/uses from Bamboo Trees
• Bamboo in normal daily life of Art and in Gardens
• Bamboo in used manufacturing sport equipment and musical
• Bamboo is used as an as a preservative in some food items, it is
medicinal and can be used in packaging products
• Bamboo is also used in construction of Houses and Boats
• Bamboo is also used in Composites and Charcoal
• Bamboo is used in Tissue Culture Laboratories and Nurseries
• Bamboo is also used in bath soap and other cleaning products
Advantages of Bamboo for Rural Development
Bamboo grows fast. After four to six years, it can be used for the production of
timber and edible shoots.
Bamboo’s root system helps bind soil and prevents erosion.
Bamboo can be managed with very few agricultural inputs, even on small areas
of land unsuitable for agricultural crops. This provides a low-maintenance and
regular source of income for smallholder farmers and households.
Bamboo, with its lightweight and linear-splitting nature, is comparatively easier
to process than timber. This provides opportunities to engage in initial
processing and increase the smaller farmer role in value addition.
Bamboo has multiple arrays of high-value end-uses such as laminated plywood,
flat pack furniture and activated charcoal
Markets for bamboo are growing rapidly as many countries have an increasingly
insufficient capacity for wood production. Bamboo is a very versatile and highly
effective substitute for timber.
Opportunities for Agave Industry
Agave Americana is an indigenous plant prevalent in the Eastern Cape from
which products like Tequila is made out of.
Opportunities exist for products of inulin,
Fibres from the Agave leaves can be used for the production of technical
textiles and reinforced composites
Waste fibres from Agave can be used to generate production of paper
In addressing rural economic development the ECDC is targeting financing of
Agave Americana beneficiation by local communities in order to promote
local economies
Wool & Mohair
ECDC contribution to the Berries Industry
ECDC has invested R5,2m in this sector, mostly as an equity partner to
an existing private company
Berries are produced in Stutterheim in EC mainly for an existing export
market in Europe and Saudi Arabia
To date, the project has been able to achieve 32 tons of produce
From 2007 a concerted effort was made by ECDC and other partners to
make the Eastern Cape the berry capital within SA
Today there is a 38 hectares blueberry farm plus a further 3 hectares of a
small scale out-growers.
The ECDC is currently planning to establish a packing and processing
infrastructure at Stutterheim in order to benefiate the berries
ECDC contribution to the Aquaculture Industry
The ECDC has invested R10 million in the province to develop an
Aquaculture Industry for ramping up production of Cog Fish for the
existing markets in CT, JHB and DBN
The company is operating from the East London Industrial
Development Zone
The company produces eggs, hatch them and then ensure they grow
into marketable levels
The company has extensive expertise in fish farming since 2003
The ECDC has further incentivise a company that produces fish by
a further R370 000 through the Jobs Fund
ECDC contribution the Pineapple Industry
The ECDC assisted in revitalising the Pineapple Industry in the Eastern Cape
through the establishment of the Eastern Cape Fibre Hub
The ECDC has invested R10 million as a combination of a loan and equity into a
private company that processes the fruit into Juice
The juice is currently exported mainly into Europe and the Arabian Countries
Further investments has been made by the ECDC in research for the viability for
micro cellulose (production of capsule covers) and bromelin (fibre) from the pineapple
leaves for the Pharmaceutical Industry
The research is costing the ECDC about R2 million
Once the potential has been established, the ECDC will look into investing more
through mobilising other funding agencies to create this industry in the province
• Arable Land with natural endowments is available in the
Eastern Cape to plant primary produce for the commodities
listed above
• The Eastern Cape(including Transkei and Ciskei) has irrigation
schemes, currently not in use, this natural resource base
provides opportunities for primary produce and processing for
world markets.
• EC has opportunities for agro-processing , green economy ,
bio-energy , food production to diversify its economic base.
• ECDC’s role is to further harness and invest in these value
chains for the Eastern Cape economy to achieve rural
development and private sector (SMME) development the same
+27 43 704 5611
[email protected]

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